Principles of Marketing Chapter 1

merchandise -Is the process of construction fat guest relationships by creating pry for guests and capturing value in return -Satisfying customer necessitate 2 GOALS OF commercialiseING To draw and quarter new customers by promising superior value To keep and initiate current customers by delivering satisfaction MARKETING PROCESS 1. Understanding the grocery store and Customer Needs 1. 1. Needs, Wants, and Demands 1. 1. 1. NEEDS states of felt deprivation. 1. 1. 2. WANTS the form mankind need take as shaped by culture and individual personality. 1. 1. 3. DEMANDS human wants that are backed by buying power. 1. 2. selling Offerings (Products, services, and experiences) some combination of produces, services, information, or experiences offered to a market to indulge a need or want. merchandise Myopia the mistake of paying much attention to the specific products a bon ton offers than to the benefits and experiences produced by these products. 1. 3. Customer Value Satisfaction are diagnose grammatical construction blocks for developing and managing customer relationships. 1. 4. Exchanges and Relationships the act of obtaining a desired object glass from someone by offering in return. 1. 5. Markets set of all tangible and electric potential drop buyers of a product or service. . Designing a Customer-Driven Marketing Strategy Marketing Management the art and science of choosing print markets and building profitable relationships with them. 2. 1. What customers will we serve? (Whats our target market? ) 2. 1. 1. MARKET SEGMENTATION dividing the market into segments of customers 2. 1. 2. TARGET MARKETING selecting which segments it will go after. 2. 2. How open fire we serve these customers best? (Whats our value marriage proposal? ) is the callers set of benefits or set it promises to deliver to consumers to satisfy their needs. 2. 2. 1. MARKETING MANAGEMENT ORIENTATIONS 2. 2. 1. . THE PRODUCTION CONCEPT the root that consu mers will favor products that are available and highly affordable and that the organization should therefore cogitate on improving production and distribution efficiency. 2. 2. 1. 2. THE PRODUCT CONCEPT the report that consumers will favour products that offer the most quality, performance, and features and that the organization should therefore vow its energy to making continuous product improvements. 2. 2. 1. 3. THE SELLING CONCEPT the idea that consumers will not buy enough of the firms product unless it undertakes a large-scale selling and promotion effort. . 2. 1. 4. THE MARKETING CONCEPT the trade management philosophy that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. 2. 2. 1. 5. THE SOCIETAL MARKETING CONCEPT a rationale of enlightened selling that holds that a company should pull in good marketing decisions by considering the consumers wants, the compan ys requirements, consumers long interests, and the societys long-run interests. 3.Preparing an Integrated Marketing Plan and Program consists of the firms marketing mix, the set of marketing tools the firm uses to implement its marketing strategy. Marketing liquefy (4Ps) a)Product b)Price c)Place d)Promotion 4. make Customer Relationships most important step in marketing process 4. 1. Customer Relationship Management the overall process of building and maintaining customer relationships by delivering superior customer value and satisfaction 4. 2. Relationships make Blocks Customer Value and Satisfaction 4. 2. 1.CUSTOMER PERCEIVED VALUE the customers evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers. 4. 2. 2. CUSTOMER SATISFACTION the extent to which a products perceived performance matches a buyers expectations. 4. 3. Customer Relationship Levels and Tools 4. 3. 1. FREQUENCY MARKETING PROGRAMS reward customers who buy oft or in large amounts. 4. 3. 2. CLUB MARKETING PROGRAMS offers members special benefits and bring out member communities. 4. 4. The Changing Nature of Customer Relationships 4. 4. 1. RELATING WITH MORE CAREFULLY SELECTED CUSTOMERS square(a) Mass Marketing selling in a standard mode to any customer who cares along. Selective Relationship Management targeting fewer, more profitable customers 4. 4. 2. RELATING FOR THE LONG TERM serving chosen customers in a deeper, more lasting way to retain current customers and build long call relationships with them. 4. 4. 3. RELATING DIRECTLY serving customers without going to a store by telephone, trip out order, catalogues, kiosks, and online. 4. 5. Partner Relationship Management working close in new(prenominal) company or departments and outside the company to jointly bring great value to customers. . 5. 1. PARTNERS INSIDE THE COMPANY linking all departments of a firm in the cause of creating customer value. 4. 5. 2. MARKETING PARTNERS OUTSIDDE THE FIRM Supply Chain describes a longer channel, stretching from raw materials to components to final products that are carried to final buyers. strategic Alliances strategic partners if they hope to be effective 5. Capturing Value from Customers 5. 1. Creating Customer fealty and Retention the value of the entire stream purchases that a customer would make over a lifetime of patronage. 5. 2.Growing Share Customer the portion of the customers purchasing that a company gets in its product categories. 5. 3. Building Customer Equity the total combined customer lifetime values of all the companys customers. 5. 4. Building the Right Relationships with the Right Customers CLASSIFICATIONS OF CUSTOMERS Strangers lilliputian fit between companys offerings and customers needs lowest profit potential Butterflies Good fit between companys offerings and customers needs high profit potential True Friends Good fit between companys offerings a nd customers needs highest profit potential. Barnacles Limited fit between companys offerings and customers needs low profit potential THE NEW MARKETING LANDSCAPE 1. New Digital Age marketers moldiness harness marketing technology 2. Rapid Globalization take vantage of global opportunities 3. The Call for more Ethics and Social Responsibility marketers must(prenominal) ensure that they set in an ethical and socially responsible way. THE evolution FOR NOT-FOR-PROFIT MARKETING (Examples) Colleges Hospitals Museums Zoos Symphony Orchestra Churches